PERF RMANCE 04 - The Performance Portal - Ernst & Young
PERF RMANCE 04 - The Performance Portal - Ernst & Young
PERF RMANCE 04 - The Performance Portal - Ernst & Young
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Foreword<br />
One of the fundamental sources of organic<br />
growth in an increasingly competitive<br />
market is innovation. New products<br />
or services developed and brought to<br />
market speedily and effectively is what<br />
differentiates high- and low-performing<br />
global organizations. Innovation<br />
management can be described as the<br />
application of external evolution on<br />
internal business processes. As<br />
external evolution becomes more<br />
varied and volatile, the challenge for<br />
organizations to keep ahead of the pack is<br />
increasingly difficult.<br />
In this issue of <strong>Performance</strong>, we<br />
examine different aspects of innovation.<br />
For example, in “Choosing the right<br />
technology,” we consider a framework<br />
which can help organizations make<br />
informed decisions about their<br />
technological development. <strong>The</strong> article<br />
explains the four challenges which<br />
businesses need to confront in order to<br />
master technological change.<br />
<strong>The</strong> importance of networks and<br />
connections on innovation is explored in<br />
two different articles. <strong>The</strong> first looks at the<br />
powerful impact of online collaborative<br />
communities. By harnessing the power<br />
of these networks, organizations can tap<br />
into a collective knowledge which is far<br />
broader than could be achieved by more<br />
traditional methods. <strong>The</strong> article introduces<br />
the concept of “coolfarming,” enabling<br />
companies to lead in the development of<br />
the next hot phenomenon.<br />
“Connection as competitive advantage,”<br />
examines some of the risks inherent<br />
in these new social, collaborative<br />
communities, and offers some options as<br />
how to manage those risks well.<br />
<strong>The</strong> theme of effective collaboration<br />
is also strong in “Making a world of<br />
difference,” which gives some great,<br />
practical insight into how to improve the<br />
performance of intercultural teams. In<br />
the past, cultural awareness training has<br />
tended to focus solely on communication<br />
whereas, in reality, when problems occur,<br />
they are due to dissimilar expectations<br />
about how the work should be done and<br />
how performance should be managed.<br />
If your challenge is more around how<br />
to improve the speed with which your<br />
organization can react to or anticipate<br />
change, then there are two case studies<br />
which will be of interest. “Advanced<br />
Solution Center” examines how you can<br />
drive change at a faster pace. In a separate<br />
case study, we explain how transforming<br />
Fresenius Medical Care’s supply chain<br />
enabled the organization to respond more<br />
quickly to changes in customer buying<br />
patterns and, as a result, make cash<br />
savings of over 15 million euros from a<br />
reduction in stock holding.<br />
I hope the articles in this edition of<br />
<strong>Performance</strong> provide inspiration as you<br />
rise to the challenge of how to grow<br />
your business.<br />
Enjoy reading this issue!<br />
Markus Heinen<br />
Chief patron, <strong>Performance</strong>